THIRD EDITION HIGHER BANK RATE

Poverty Bay Herald, Volume LV, Issue 17175, 4 February 1930, Page 11

THIRD EDITION HIGHER BANK RATE

r ■ _^_^ Auckland city finances I EFFECT KOT SERIOUS [ : Th«v higher bank rate will not/affect'

takknd city V finances to any apprepablo extent (states the.. Star). Mr. J. j fc Brigbam,. town dork, stated .that ho ; lid not* regard the increased overdraft m»: of one-half per cent,, ,yery seri- j »«ly, : for the reason that the City CounM a of ohteining ;iuoney Ifcom* sources other than the bants. . j [''♦Although the Tbanks have always Eeh ready to assist us financially," said \ r. Brigham, "the accommodation j ilich we required haft never been very, |wwfy, ndr ftl Anticipated, that it ftfli be in future. Wo have always |o*md that there was:, plenty of money jivailatle for our needs at call. This ( ioiiey the City; Council, _hu* ; in, past Ifferies* availed itself of during the financial year, at periods when money was WBcessary." - Mr. Brigham said the policy, of ac-, iptuie money at, call,at a, much lower ' »te than that given by the banks for ; Ixed deposits Had saved the city thousands of pounds. For that reason the increased bank rate would not rtfect th* city finances materially. | •>"Monay ia a. commodity, and it has it* price," said the town clerk. ''lf me .''.grants .it from tho bank, then the pricemust-be paid, but if it can.be Biiained W«BW>ere at a cheaper rate, ri is unsound to go to the banks. The largest sum we have had on loan from the public this year was £2C0,000. As ibon: as our revenue began. .to ■. come in we refunded a large amount of that money." '"*•.•' Mr. Brigham said that last year the imount paid .in interest on oyWdraft• ras only 15788, as compared with the turn of £5114 paid bv way of interest jftUjiims at call. Thus it would, be ie«|Fihat a rise of one-half per cent. rates, in relations to Inances totalling £l,ot»,000, was a, trifling matter, in vie* of the fact that iccommodation at the banks was not atilised to a large extent.